More than 40 percent of John Hickenlooper's $2.7 million in charitable contributions since 1985 originated with conservation easements on land he owns in Park County.

The value of those easements was later questioned by the Internal Revenue Service, and Hickenlooper paid $52,486 rather than dispute the finding.

Although the Denver mayor previously made his tax returns public as part of a request made of gubernatorial candidates, he has declined to reveal charities he has supported, saying he didn't want them politicized and because he promised some of them anonymity (Republican Dan Maes and the American Constitution Party's Tom Tancredo have not provided any tax records to The Denver Post).

Hickenlooper never mentioned the easements, first reported by KMGH-Channel 7, which were donated to The Nature Conservancy. He owns 295 acres but cannot develop the land. However, a stipulation in the agreement permits him to build a house.

Hickenlooper said he stands by his decision not to reveal the charities.

"I think this proves the point that it can turn into political football," he said. "The Nature Conservancy doesn't need to be dragged into this."

Hickenlooper said this is his only property with conservation easements and no other charities he supports receive donations this way.

Partner bought property

Advertisement

In the late 1990s, a group of developers started negotiations with the U.S. Forest Service for 660 acres in Park County. County residents fought the developers, who planned to divide the land into 35-acre lots that could be developed with homes, according to a 2003 article in the Park County Republican and Fairplay Flume.

Hickenlooper's former business partner Lee Driscoll ultimately bought the land in 2000 for $1.7 million — about $1,330 an acre — with the intent of preserving it.

He then deeded half the land to Hickenlooper.

"We could've made at least $2 million if we broke it up and sold it," Hickenlooper said.

Between 2002 and 2007, Hickenlooper put easements on the property, which were donated to The Nature Conservancy and resulted in $1.1 million in federal tax write-offs.

Tim Sullivan, The Nature Conservancy's state director, said the group "values easements on biologically significant land as much as cash contributions to our organization."

He said Hickenlooper's easements helped preserve "valuable forest land and wildlife habitat in a critically important watershed."

Conservation easements allow landowners to get tax deductions and earn tax credits they can sell for cash in exchange for restricting development. Those that donate or sell easements at less than fair-market value to a land trust receive charitable deductions on their federal tax returns. In Colorado, the donation creates a tax credit against the state income tax.

In 2007, the state's revenue department found abuses in the program. The state called in the Internal Revenue Service, which audited 290 tax returns that involved conservation easements, including Hickenlooper's.

The IRS nullified 50 easements. Hickenlooper, along with about 100 others whose easements remained in place, received a form letter questioning their land valuation. The IRS offered a settlement of $52,486, which Hickenlooper paid in 2008.

Most people, including Hickenlooper, did not receive any specifics or documentation "for how or why the IRS had come to conclusion or settlement," according to the mayor and a May 2008 memo from the Colorado Coalition of Land Trusts.

Senators intervened

Former Sens. Wayne Allard, a Republican, and Ken Salazar, a Democrat, sent a joint letter to the IRS questioning its tactics in Colorado and asking the agency to send them criteria used to formulate the settlement offers.

"A swift resolution must not come at the expense of fairness to the taxpayers, many of who have endured burdensome, multi-year investigations into their conservation easements," according to a Dec. 7, 2007, letter.

The only other publicly known charity that Hickenlooper has donated to is The Chinook Fund, a group that gives to groups it says are considered "too new, too risky or too radical" for more traditional foundations. Established by Hickenlooper and others in 1987, the fund has supported everything from the Gender Identity Center of Colorado to Denver Cop Watch.

Hickenlooper stepped down from the board in 2003 during his mayoral run.

This article has been corrected in this online archive. Originally, due to a reporter's error, a story Thursday on Page 1B incorrectly quoted Denver Mayor John Hickenlooper saying he could have sold land in Park County and made a profit of $1 million, rather than placing a conservation easement on the property. He actually said he could have profited by $2 million.

Lockheed says object part of 'sensor technology' testing that ended ThursdayWhat the heck is that thing? It's fair to assume that question was on the minds of many people who traveled along Colo. 128 south of Boulder this week if they happened to catch a glimpse of what appeared to be a large, silver projectile perched alongside the highway and pointed north toward town.

PARIS (AP) — Bye, New York! Ciao, Milan! Bonjour, Paris! The world's largest traveling circus of fashion editors, models, buyers and journalists has descended on the French capital, clutching their metro maps and city guides, to cap the ready-to-wear fashion season. Full Story